Tax Laws and FFL's

Discussion in 'The Pub' started by Syntax360, Apr 2, 2007.

  1. Syntax360

    Syntax360 Premium Member

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    Let's play a game - suppose I live in the state Colorado and I want to purchase a firearm from a company that resides in the great state of Texas. I go to my FFL and he sends off the paperwork and the company in Texas sends the pistol to my FFL in Colorado. Should my FFL charge taxes on the pistol?

    The way I understand it, the FFL is only facilitating the transfer, not selling me the pistol. Ergo, it is an out of state purchase and I would be exempt from paying both TX and CO sales taxes. Am I wrong on this?

    Thanks guys!
     
  2. smores

    smores Guest

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    Sounds about right to me. Unless you are buying the gun in the state in which you reside, you don't owe tax.

    Check out eBay.com.... or even GunBroker pretty much every lister (or at least those which have a single distribution center) states "** residents must pay *.**% sales tax". For everyone else it's free.
     

  3. Shooter

    Shooter Premium Member

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    No, he should not charge you tax unless the product originated from Colorado. We have a pawn shop in town that tried that crap. I am sure he is pocketing the extra money. No other FFL I know of in Fl is charging tax. He will probably give you some excuse, ..You are right it is a transfer, not a purchase. I would question the FFL......but I wouldn't do business with this FFL again, and maybe contact BATF if he pisses you off.... :lol: I always tell the sender not to include any paperwork with the pistol that does not pertain to the transfer itself. Send the paperwork to me directly.....He may say he's protecting his a$$.........notice the $$ :lol:
     
  4. madecov

    madecov Active Member

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    Your transfer dealer should not collect sales tax as he did not make a sale. That's why it's sales tax.

    Contact your state tax authority and ask. This is a mail order purchase no different than a camera or stereo.

    In fact in Texas there is no tax on the transfer fee, I asked our State Comptrollers office and they had a code just for firearm transfers.
     
  5. Syntax360

    Syntax360 Premium Member

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    Just what I thought - thanks guys! I was just clearing up a dispute with a buddy :). His take on it was the FFL was buying the pistol from CDNN, "stocking" it in his shop for a few minutes or whatever, and reselling it to our friend and thus our friend would have to pay CO tax (because our friend would be buying it from the shop, not CDNN at that point). I told him his FFL was driving up the cost unnecessarily, and now I'm quite sure I was right on this point.
     
  6. madecov

    madecov Active Member

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    If your friend has paid CDNN with a credit card, then the FFL is committing fraud.
     
  7. Netfotoj

    Netfotoj Premium Member

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    I've bought two Steyr MA1's from out of state and had them shipped to two different FFLs here. Neither charged me sales tax, but the second one I used has a policy that's almost as nonuser-friendly as charging sales tax.

    Their FFL transfer rate is $25 OR a percentage of the sale if it's above a certain amount. Why should they care whether I buy a cheap gun or an expensive gun? All they have to do for their FFL fee is sign for a package and hand you a form to fill out. It's bad enough to charge $25 for it, without adding in an escalator clause.

    I won't be using that FFL again. Let the buyer beware.
     
  8. Syntax360

    Syntax360 Premium Member

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    I agree with the % of purchase thing - completely ridiculous! Their job isn't any harder if I buy a $3000 gun instead of a $300 gun - why should the consumer be forced to pay more? I pay $20/transfer, which is the going rate in the area.
     
  9. smores

    smores Guest

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    Their job isn't any harder, they can make more money though :evil:

    That's how MOST of the dealers are here in MD. I have just found one ( I think, we'll see after this transfer is done ) that seems pretty fair and square. This place even lists on their website prices for "Internet Transfers" (GunBroker, GunsAmerica, etc.). It's basically a one-man shop open Tuesday-Thursday 6-9pm and Saturday from 11am-9pm.
     
  10. Zundfolge

    Zundfolge Member

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    Some states are now trying to collect sales tax on interstate transactions.

    Some states put on their income tax form a place for you to enter all the interstate transactions (like catalog purchases, eBay, etc) and pay the sales tax on those transactions.

    I did a quick search and found this (apparently for Florida) http://dor.myflorida.com/dor/consumer/

    But there's other states trying to pull this crap too (and I could swear Texas is one of them) ... there's also a move afoot to tax internet based sales (but not print catalog sales) in several states.
     
  11. smores

    smores Guest

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    I think Amazon charges sales tax... I've only ordered from them a couple times, and all items shipped from NJ or somewhere not in MD.

    This brings back memories of Congress trying to impose a tax on e-mails to recover business lost due to people using that as opposed to snail mail :roll:
     
  12. Syntax360

    Syntax360 Premium Member

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    I've never had issues here in TX - if I order a gun online, there is definitely no tax. That's the #1 motivator for ordering firearms online.

    The question came about when I was discussing Cold_Fluorescence's situation and method for acquiring his M-A1 - just trying to watch your back, bro :) It seems there was a miscommunication and the middleman FFL is not charging tax - though CDNN's shipping rate strikes me as being a wee bit high from TX to CO...
     
  13. smores

    smores Guest

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    I think I should be ok, I've got 2 FFL's cooperating and one awesome member of the forum here helping out.

    Like they say it's not over until the Fat Lady sings, but I think it's going pretty smoothly so far.
     
  14. matt13

    matt13 Premium Member

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    Something similar happened to me when I bought my M9-A1 from CDNN.

    The first FFL I went to wanted to charge me a 15% "handling" fee and then sales tax and then the transfer fee. It added about $100 to the purchase price. I just turned and walked!

    The second FFL I called wanted his transfer fee and sales tax.

    The third assured me that there was no tax and his transfer fee was less than the other two anyway. :p